GOVERNMENT OF INDIA
Ministry of Commerce & Industry
DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

 RAJYA SABHA
STARRED QUESTION NO. 373
ANSWERED ON WEDNESDAY, FEBRUARY 19, 2014

 QUESTION
Setting up of Three National Investment Manufacturing Zones (NIMZS) Across Karnataka

 

*373. SHRI RAJEEV CHANDRASEKHAR:

 Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

(a)   whether Government has approved setting up of three National Investment Manufacturing Zones (NIMZs) across Karnataka, to become a preferred location for new industries in Tumkur, Gulbarga and Kolar, if so, the details thereof;

 (b)   what other recommendations are envisaged in Government's National Manufacturing Policy to increase sectoral share of manufacturing in GDP over the next decade and generate more jobs in the sector through higher annual growth rate; and

 (c)    whether Government proposes to set up India's first Information Technology Investment Region (ITIR) in Devanahalli, near Bengaluru, in partnership with Karnataka Government, if so, the details thereof?

 ANSWER
THE MINISTER OF COMMERCE & INDUSTRY
(SHRI ANAND SHARMA)

(a) to (c): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF RAJYA SABHA STARRED QUESTION NO. 373 FOR ANSWER ON WEDNESDAY, THE, 19TH FEBRUARY, 2014 REGARDING SETTING UP OF THREE NIMZs ACROSS KARNATAKA.

 

(a): Government has granted in-principle approval for one National Investment and Manufacturing Zone (NIMZ) in Tumkur district in the State of Karnataka. The said approval was conveyed to the State Government on 17th October, 2012. Proposals have also been received for NIMZ in the Gulbarga, Bidar and Kolar districts of Karnataka.

 (b): The National Investment and Manufacturing Zones (NIMZs) are an important instrumentality of the National Manufacturing Policy and are envisaged as integrated industrial townships with state-of-the-art infrastructure and self-regulation by a Special Purpose Vehicle (SPV). In addition to the NIMZ, the dispensations of the policy apply to manufacturing industry throughout the country including wherever industry is able to organize itself into clusters and adopt a model of self regulation as enunciated in the policy. The policy contains the following major dispensations:-

(i)     Rationalization and simplification of business regulations with the objective of reducing the regulatory burden on industry. The SPV of the NIMZ/industrial cluster is envisaged to have delegated power of clearances under relevant laws and regulations wherever possible. The policy also provides for the process of clearances to be made web enabled; timelines to be specified; combined application and reporting forms to be developed as far as practicable.
(ii)   A simple and expeditious exit mechanism for manufacturing units, to ensure priority payment of labour dues and thereby eliminate the charge on the physical assets.
(iii) Financial and institutional mechanisms for technology development including green technologies in the form of a technology acquisition and development fund.
(iv)  Industrial training and skill upgradation measures including fiscal incentive for private sector participation in skill development activities.
(v)  Measures for improving access to finance for SMEs in the manufacturing sector including rollover relief from capital gains tax in case of investment in the equity of a new start up SME in the manufacturing sector; tax pass through status for venture capital funds with a focus on SMEs in the manufacturing sector; separate stock exchange for SMEs and liberalization of guidelines for investment by insurance companies in venture capital funds with a focus on SMEs in the manufacturing sector.
(vi) Measures for leveraging government procurement to strengthen manufacturing and value addition.

 

(c): Government has conveyed approval to Government of Karnataka on 26th June, 2013 for setting up an ITIR near Bengaluru spread over 45 revenue villages of Doddaballapur and Devanahalli taluks.